Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes.
-Scholarship funds used to pay room and board

Question

Quizplus · Accepted Answer

Scholarship funds used for room and board are considered taxable income by the IRS. Scholarships used directly for tuition and course-related expenses are typically nontaxable, but funds used for living expenses are taxed.

Put T for Taxable Income or N for Nontaxable Income